Being fully aware of past and current debt can help you control incurring new debt that cannot be managed. Now that you are seriously in debt, you need to work extra hard to repair your poor credit. The following helpful hints are good ideas, and when applied, assist you in building back up your credit rating.
Credit Limit
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
Try an installment account to get a better credit score and make some money. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. If these accounts are properly managed, they can provide a quick boost to your credit score.
If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. However, you did sign an agreement to pay the interest. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
If credit improvement is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Negative info stays on your history for seven years! Incorrect information may be erased though.
Paying your bills is something you need to do to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. You will notice how quickly your credit score increases when you start paying off those overdue bills.
Do not do anything that will make you end up in jail. Don’t buy into scams that suggest you create new credit files. Needless to say, this is against the law and you are likely to get caught. You could go to jail if you have a lot of legal issues.
Repairing credit is mostly done by common sense methods. You can find those waters by sailing with these tips.
